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News Digest & Commentary
DIRECTV: We Might Be For Sale
TVPredictions.com

Washington, D.C. (November 20, 2009) -- DIRECTV said yesterday that either AT&T or Verizon could wind up buying its satellite TV service.

In an interview with Bloomberg News, John Malone, chairman of the DIRECTV Group, noted that both telcos sell DIRECTV's programming service as third party vendors. (The services are sold in area where the telcos don't offer their own TV service.
 

"Our relationship will continue to broaden and intensify," Malone told Bloomberg. "It may lead to some more ownership-oriented relationship, or it may not."

Read more below.

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The possibility of a takeover bid was made easier yesterday when DIRECTV agreed to officially merge with Malone's Liberty Entertainment by the end of the year. Liberty has had a controlling  stake in DIRECTV, but the merger reduces Malone's stake in half, which makes an acquisition easier, according to Bloomberg.

DIRECTV also this week announced that it has hired former Pepsi executive Michael White to be its new CEO, a move that could also signal a possible change in ownership.

And DIRECTV has said publicly that it's attempting to reduce operational costs, which could be an effort to make itself more attractive to a prospective buyer.

Swanni's Take:
Get ready for a deal. Malone is clearly pitting one telco against the other in public in an effort to get both of them to sweeten takeover offers. I would be surprised if either Verizon or AT&T doesn't buy DIRECTV in the next six months.

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Phillip Swann is president and publisher of TVPredictions.com. He has been quoted in dozens of publications and broadcast outlets, including CNN, Fox News, Inside Edition, The New York Times, The Washington Post, The Chicago Tribune, The Financial Times, The Associated Press and The Hollywood Reporter. He can be reached at swann@tvpredictions.com or at 703-505-3064.

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